Complex Real-Life Supply Chain Planning Problems

2012 ◽  
pp. 1441-1466
Author(s):  
Behnam Fahimnia ◽  
Mohammad Hassan Ebrahimi ◽  
Reza Molaei
Keyword(s):  
Supply Chain ◽  
Current Literature ◽  
Real Life ◽  
Raw Material ◽  
Mixed Integer ◽  
Supply Chain Planning ◽  
Production And Distribution ◽  
Complex Models ◽  
Tools And Techniques ◽  
Planning Problems

Supply chain planning concerns the selection of strategies and methodologies to facilitate the optimal flow of material from raw material suppliers to end-users through procurement, production and distribution activities. Supply chain (SC) implementation has significant impacts on the financial performance of manufacturing and distribution companies. Developing real-life SC models with centralised planning naturally leads to complex models which are difficult to solve optimally. This chapter firstly presents a comprehensive review on the current literature of SC planning and optimisation and classifies the published models based on their complexity. Next, a mixed-integer non-linear formulation is presented for modelling complex real-life SC planning problems which accommodates the identified gaps in the current literature. Evaluation of the available tools and techniques for the optimisation of the proposed SC model will conclude this chapter.

Complex Real-Life Supply Chain Planning Problems

2011 ◽  
pp. 102-127 ◽  
Author(s):  
Behnam Fahimnia ◽  
Mohammad Hassan Ebrahimi ◽  
Reza Molaei
Keyword(s):  
Supply Chain ◽  
Current Literature ◽  
Real Life ◽  
Raw Material ◽  
Mixed Integer ◽  
Supply Chain Planning ◽  
Production And Distribution ◽  
Complex Models ◽  
Tools And Techniques ◽  
Planning Problems

Supply chain planning concerns the selection of strategies and methodologies to facilitate the optimal flow of material from raw material suppliers to end-users through procurement, production and distribution activities. Supply chain (SC) implementation has significant impacts on the financial performance of manufacturing and distribution companies. Developing real-life SC models with centralised planning naturally leads to complex models which are difficult to solve optimally. This chapter firstly presents a comprehensive review on the current literature of SC planning and optimisation and classifies the published models based on their complexity. Next, a mixed-integer non-linear formulation is presented for modelling complex real-life SC planning problems which accommodates the identified gaps in the current literature. Evaluation of the available tools and techniques for the optimisation of the proposed SC model will conclude this chapter.

scholarly journals Supply chain integration within mass customization: Tactical procurement, production and distribution modeling

2021 ◽  
Vol 14 (2) ◽  
pp. 250
Author(s):  
Mouad Benbouja ◽  
Achraf Touil ◽  
Abdelwahed Echchatbi ◽  
Abdelkabir Charkaoui
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Mass Customization ◽  
Programming Model ◽  
Exact Method ◽  
Raw Material ◽  
Mixed Integer ◽  
Dyadic Relationships ◽  
Distribution Modeling ◽  
Production And Distribution

Purpose: The actual market characteristic oriented toward customers’ requirements compels decision-makers to foresee customization abilities. Mass customization represents a valuable approach to combine customizable offers with mass production processes. From a supply chain standpoint, this paper attempts to develop an integrated procurement, production and distribution modeling to describe the generated framework structure formulation within tactical decision planning level.Design/methodology/approach: The paper provides a mixed integer linear programming model of a three echelon supply chain illustrated from the automotive industry with (a) customers: Original Equipment Manufacturers (OEMs) identified as leaders and (b) first-tier supplier: wiring harnesses manufacturer (c) second-tier supplier: raw material supplier, identified as followers. The model formulation is depicted through dyadic relationships between stakeholders considering the specific operation enablers of the environment such as make to order, modular approach in addition to the corresponding inventory management policy.Findings: The integrated model is solved by an exact method which illustrates the feasibility of the formulation in addition to the observance of the applied constraints. A sensitivity analysis is performed to highlight the interdependency across some key parameters to provide managerial insights within the studied framework while keeping the optimal solvability of the model.Research limitations/implications: The limitation of this study is the computational experiment study. An extensive experiment with a real-word case will outline the optimal solvability status of the exact method and the necessity for a performance benchmark through the approximate solving approaches.Originality/value: The present research aims to contribute as first studies toward mathematical modeling for supply chain decision planning endeavor operating within mass customization business model.

Coordinating lot sizing and integrated production and distribution scheduling with batch delivery and holding cost

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maedeh Bank ◽  
Mohammad Mahdavi Mazdeh ◽  
Mahdi Heydari ◽  
Ebrahim Teimoury
Keyword(s):  
Supply Chain ◽  
Lot Sizing ◽  
Mixed Integer ◽  
Time Interval ◽  
Content Type ◽  
Integrated Production ◽  
Holding Costs ◽  
Integrated Production And Distribution ◽  
Distribution Scheduling ◽  
Production And Distribution

PurposeThe aim of this paper is to present a method for finding the optimum balance between sequence-dependent setup costs, holding costs, delivery costs and delay penalties in an integrated production–distribution system with lot sizing decisions.Design/methodology/approachTwo mixed integer linear programming models and an optimality property are proposed for the problem. Since the problem is NP-hard, a genetic algorithm reinforced with a heuristic is developed for solving the model in large-scale settings. The algorithm parameters are tuned using the Taguchi method.FindingsThe results obtained on randomly generated instances reveal a performance advantage for the proposed algorithm; it is shown that lot sizing can reduce the average cost of the supply chain up to 11.8%. Furthermore, the effects of different parameters and factors of the proposed model on supply chain costs are examined through a sensitivity analysis.Originality/valueAlthough integrated production and distribution scheduling in make-to-order industries has received a great deal of attention from researchers, most researchers in this area have treated each order as a job processed in an uninterrupted time interval, and no temporary holding costs are assumed. Even among the few studies where temporary holding costs are taken into consideration, none has examined the effect of splitting an order at the production stage (lot sizing) and the possibility of reducing costs through splitting. The present study is the first to take holding costs into consideration while incorporating lot sizing decisions in the operational production and distribution problem.

Relief Supply Chain Planning

2011 ◽  
pp. 31-44
Author(s):  
Ruth Banomyong ◽  
Apichat Sodapang
Keyword(s):  
Supply Chain ◽  
Planning Process ◽  
Real Life ◽  
Simulation Models ◽  
Illustrative Case ◽  
Chain Model ◽  
Supply Chain Planning ◽  
Real Life Situation ◽  
Illustrative Case Study ◽  
Relief Supply Chain

The purpose of this chapter is to provide a framework for the development of relief supply chain systems. An illustrative case study is presented in order to help relief supply chain decision makers in their relief supply chain planning process. Developing simulation models to test proposed relief supply chain response plans is much less risky than actually waiting for another disaster to happen and test the proposed relief supply chain model in a real life situation. The simulated outcome can then be used to refine the developed relief supply chain response model.

Design and Development of an e-Platform for Supporting Liquid Food Supply Chain Monitoring and Traceability

2010 ◽  
Vol 3 (3) ◽  
pp. 29-49 ◽  
Author(s):  
Dimitris Folinas ◽  
Ioannis Manikas
Keyword(s):  
Supply Chain ◽  
Reference Model ◽  
Raw Materials ◽  
Real Life ◽  
Liquid Food ◽  
Efficient Operation ◽  
Traceability System ◽  
Proposed Model ◽  
Production And Distribution ◽  
Liquid Products

In this paper, the deliverables of a research project are presented, which aims at the development of a webbased platform capable of supporting the traceability of liquid products like milk, wine and olive oil. First, it includes the design of a supply chain reference model and the identification of the data required for the efficient operation of the traceability system. The main elements of the proposed model defined in this paper are the entities, stages, events, and processes. The reference model consists of three distinct phases that represent stages of real-life supply chains. Each of these phases is defined by certain interactions between the above basic elements. Additionally, the proposed e-platform is based on the above reference model aiming to follow and register the production and distribution processes of the raw materials, semi-finals, and final products that are used in the examined industry.

scholarly journals Optimizing the Raw Material Supply Chain of the Wood Biomass Power Generation Industry for Different Stakeholders’ Benefits: An Analysis of Inner Mongolia, China

2020 ◽  
Vol 12 (5) ◽  
pp. 1887
Author(s):  
Yang Bai ◽  
He Yang ◽  
Yu Zhao ◽  
Min Zhang ◽  
Jinyuan Qin ◽  
...  
Keyword(s):  
Power Generation ◽  
Supply Chain ◽  
Inner Mongolia ◽  
Raw Materials ◽  
Raw Material ◽  
Western China ◽  
Mixed Integer ◽  
Utilization Rate ◽  
Wood Biomass ◽  
Material Supply

A large number of sand shrubs have been planted in western China, especially in Inner Mongolia. Sand shrubs produce a large amount of stump residue, and wood biomass power generation enterprises that use stump residue as raw materials have emerged in Wushen Banner and other areas. In this paper, the Mixed Integer Linear Programming (MILP) model is used to optimize the raw material supply chain of forest biomass power generation enterprises. Optimizations with different objectives represent the choices of different stakeholders. The optimization results are listed as follows. (1) The self-issuance behavior of enterprises is inconsistent with the enterprise behavior required by social planners; (2) When social planners only pay attention to environmental benefits, the utilization rate of raw materials in towns located far from a power plant will be greatly reduced, which is not conducive for the reuse of stump residue; (3) When social planners consider economic, environmental, and social benefits simultaneously, the utilization rate of raw materials in each town will be significantly improved, resources will be effectively utilized, and certain economic benefits will be realized; (4) It is possible to reduce the difficulty of achieving optimization goals by promoting industrial development and encouraging technological progress.

scholarly journals Supply Chain Optimization for Farmer-Bepari System of Agricultural Products in Bangladesh

2019 ◽  
pp. 1-13
Author(s):  
Mohammad Khairul Islam ◽  
Md. Mahmud Alam ◽  
Mohammed Forhad Uddin
Keyword(s):  
Product Distribution ◽  
Labour Cost ◽  
Agricultural Products ◽  
Raw Material ◽  
Mixed Integer ◽  
Optimization Strategy ◽  
Supply Chain Optimization ◽  
Material Cost ◽  
Production And Distribution ◽  
Milp Model

This study, for the Farmer-Bepari system of agricultural products in Bangladesh, can be formulated as a mixed integer linear programming (MILP) model. Further, it will be investigated that the significant impact of profit the attributes such as labour cost, fertilizer cost, the raw material cost of different firms and also to estimate the product distribution in different locations. To solve this MILP model, with the help of a branch and bound algorithm by using A Mathematical Programming Language (AMPL). To investigate the model we have to collect data from seven locations of three districts in Bangladesh. Also, a numerical example presented this study, which objectives illustrate the models. From the sensitivity of the production, if the raw material cost, labour cost and fertilizer cost increase is about 5%, then decrease the profit by MILP model have 0.004%, 1.6% and 1.2% respectively. Labour cost is a significant factor in profit, which changes the profit more than the raw material cost and fertilizer cost of the product. The results are helping decision-makers to identify the desired agricultural production and distribution structure optimization strategy.

scholarly journals Partial Coordination May Increase Overall Costs in Supply Chains

2008 ◽  
Vol 2 (2) ◽  
pp. 47-62 ◽  
Author(s):  
Waldemar Kaczmarczyk
Keyword(s):  
Supply Chain ◽  
Computational Study ◽  
Mixed Integer ◽  
Single Model ◽  
Sequential Method ◽  
Production And Distribution ◽  
Planning Methods ◽  
Production And Distribution Planning ◽  
The Right ◽  
The Impact

This paper presents a computational study to evaluate the impact of coordinating production and distribution planning in a two-level industrial supply chain. Three planning methods are compared. The first emulates the traditional way of planning. The two other coordinate plans of the supplier and of all the buyers according to the Vendor Managed Inventory (VMI) approach. The monolithic method solves a single model describing the entire optimization problem. The sequential method copies the imperfect VMI practice. All three methods are implemented by means of Mixed Integer Programming models. The results presented prove that the right choice of planning method is very important for overall cost of the supply chain. In contrast to the previous research, it turned out that information sharing without full coordination may even lead to increase in the overall cost. For some companies applying the VMI approach, developing exact models and solving them almost optimally may therefore be very important.

Design of Closed Loop Supply Chain Networks

2014 ◽  
Vol 1 (1) ◽  
pp. 43-66 ◽  
Author(s):  
Subramanian Pazhani ◽  
A. Ravi Ravindran
Keyword(s):  
Supply Chain ◽  
Network Design ◽  
Closed Loop ◽  
The United States ◽  
Raw Material ◽  
Mixed Integer ◽  
Closed Loop Supply Chain ◽  
Supply Chain Networks ◽  
Optimal Network Design ◽  
Optimal Network

Given the importance of operating and managing forward and reverse supply chains in an integrated manner, this article considers an integrated four-stage supply chain network with forward and reverse product flows. We consider a closed loop supply chain (CLSC) network with primarily commercial returns, which could be potentially recovered by light repair operations or by refurbishing. The annual estimate of commercial returns in the United States is in excess of $100 billion. This paper discusses the optimal design of a CLSC network.A mixed integer linear programming (MILP) model is developed to determine the optimal locations of the facilities and the distribution of flows between facilities in the CLSC to maximize the total profit. The model is illustrated using a realistic example applicable to the electronics industries. Even though recycling and refurbishing add cost, the overall supply chain profit increases due to a reduction in the raw material cost. Sensitivity analysis is carried out to determine the effect of return percentage and varying demands of customers who are willing to buy refurbished products. The analysis show that the total supply chain profit increases with the increase in refurbishing activity. Finally, changes in the network design with respect to the uncertainty in these return parameters are also studied. The results show that the changes in return parameters lead to changes in optimal network design implying the need to explicitly consider the uncertainty in these return parameters.

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